Interpublic Stock Analysis, Valuation (NYSE:IPG)

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$22.37 $0.19 (0.84%) IPG stock closing price Aug 17, 2018 (Closing)

Watch the robo advisor video of Interpublic stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for IPG stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Interpublic Group of Companies Inc Stock Rating 3.5/5

Amigobulls IPG stock analysis uses latest quarter 2018 Q2 financial data like Interpublic revenue growth, profit margins and cash flows. We compare Interpublic valuation with its sector peers to gauge relative attractiveness of IPG stock. Interpublic stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy IPG stock?

  • The Year Over Year (YoY) revenue growth for Interpublic was 26.9% in 2018-06.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 4.6.
  • The TTM operating margin was good at 11.65 for Interpublic.
  • The Interpublic stock currently trades at a price to earnings ratio of 14.3, compared to the sector average of 23.8. We rate this as a positive.
  • When compared with the Business Services sector average PS ratio of 1.6, the price-to-sales ratio of 1 for IPG stock is attractive.
  • Interpublic's return on invested capital of 14.6 is good.
  • The LTM ROE of 28.3 for Interpublic is attractive.

Should you sell IPG stock?

  • With a debt/equity ratio of 0.98, Interpublic is highly leveraged in comparison to Business Services peers.

Comments on this video and Interpublic stock

Amigobulls Interpublic stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of IPG stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Interpublic revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of IPG technical analysis to check whether the fundamental story is reflected in the market sentiment.